Tariffs Uncertainty Raises Input Cost for Farmers and Ag Retailers

The president and CEO of the Agricultural Retailers Association says tariff policy is continuing to add uncertainty to the ag input sector, with cost pressures beginning to work their way toward the farm gate.

Darren Coppock says companies have largely absorbed higher costs tied to tariffs on ingredients used in pesticides and herbicides, but he warns that won’t last. “You’ve seen some projections already that show production costs are going to go up this year,” Coppock said, adding that tariff impacts are starting to “bleed all the way through into farm prices.”

He also says tariffs on lumber and steel are complicating efforts to expand domestic fertilizer production, citing elevated construction costs and a lack of predictability. Coppock told Brownfield that sudden tariff changes—and uncertainty about how high they will be or how long they’ll remain in place—make long-term investment decisions difficult when new plants require multi-year planning horizons.

Tariff concerns intensified over the weekend after President Trump threatened new 100% tariffs on Canadian products following Canada’s trade deal with China. Coppock noted that U.S. farmers rely on Canadian potash, a potassium based salt, and so far supplies and prices have remained relatively stable.

Source: BrownfieldAgNews.com